Investor Conference Call on
Company: Global Railway Industries Ltd. Stock Symbol: GBI Listing: Toronto Stock Exchange Web Site: www.globalrailway.com
2009 Q3 Financial Highlights: 3 months ended September 30, 2009 - Total revenue of $16.9 million compared to $15.1 million in the third quarter of 2008 - Net loss of $532 thousand compared to $542 thousand of net income in the third quarter of 2008 - Loss per share of $0.03 compared to earnings per share of $0.04 in the third quarter of 2008 2009 Financial Highlights: 9 months ended September 30, 2009 - Total revenue of $49.0 million compared to $45.2 million for the same 9 month period in 2008 - Net loss of $3 million compared to $1.3 million of net income for the same 9 month period in 2008 - Loss per share of $0.19 compared to earnings per share of $0.08 for the same 9 month period in 2008
"Due to the economic recession in 2008 and 2009 year-to-date, Railroads continue to store about 20% of their locomotive and railcar fleets and maintain tight control over operating and capital expenditures to address reduced freight revenues and operating income." said Terry McManaman, Chairman, President and CEO of Global. "The Railroads' reduced spending has materially impacted Global's financial results in 2009 due to reduced locomotive and railcar maintenance and component sales being substantially lower than in prior years."
McManaman continues, "Global's rail product and service offering to passenger rail and transit operators was the catalyst to our overall revenue growth in Q3, rising 12%. Global subsidiary Bach-Simpson, whose customer's are mostly commuter and passenger rail related, has generated a year-to-date sales increase of 59% and continues to forecast strong growth throughout the remainder of the year. Approximately 40% of Global's total revenues are generated from passenger rail and transit operators."
Brian McMullan, Chief Financial Officer of Global said, "During the third quarter, the Company's subsidiary Presidents aggressively managed their respective subsidiary's net working capital which has strengthened the Company's cash flow. Global's quarterly financial performance has steadily improved in 2009 and Management expects the Company will return to profitability in 2010."
"Despite lower demand for track & signal and rail gear products, Global subsidiary G&B Specialties' sales and gross margins met Management's expectations in the third quarter of 2009," said McManaman. "In 2009, G&B has been able to maintain the same level of sales compared to 2008, aided by new international sales, new customer penetration in local markets, and a higher average US dollar."
McManaman continued, "Diminishing sales volumes in the locomotive and component markets combined with the learning curve impact on the VIA Rail
Levy continues, "CADRI continues to experience decreased sales for locomotive maintenance and component parts. Management expects this trend to extend into early 2010 as railroads continue to store substantial numbers of locomotives and railcars."
"On a positive note, some of the freight railroads are starting to see some signs that several market groups are stabilizing, and if that is the case we expect a pent up demand for our products for 2010 as rail work and maintenance programs resume to more normalized levels," concluded McManaman.
Amended Credit Agreement with Lenders
Global has successfully negotiated the terms for an amended credit agreement with its Lenders. The amended credit agreement has proactively dealt with banking covenants and deferred two scheduled long-term-debt repayments until the expiry date of the term credit facility in 2012. These amendments provide the Company with greater utilization of its existing operating facility and to support the immediate working capital and liquidity needs of the Company. The operating facility has been renewed to the next annual review scheduled for
Special Committee
Global announced on
Financial Summary: ------------------------------------------------------------------------- Summary Three months Three months Change Income Statement ending ending (unaudited) September 30, September 30, 2009 2008 ------------------------------------------------------------------------- Revenues $16,945,656 $15,068,561 $1,877,085 Net earnings (loss) ($531,528) $541,869 ($1,073,397) Earnings (loss) per share (diluted) ($0.03) $0.04 ($0.07) ------------------------------------------------------------------------- Summary Nine months Nine months Change Income Statement ending ending (unaudited) September 30, September 30, 2009 2008 ------------------------------------------------------------------------- Revenues $49,008,921 $45,203,538 $3,805,383 Net earnings (loss) ($2,955,231) $1,283,255 ($4,238,486) Earnings (loss) per share (diluted) ($0.19) $0.08 ($0.27)
The Company's 2009 Q3 financial statements and Management's discussion and analysis will be posted later today in the investor information section of Global's web site at www.globalrailway.com and are also available on SEDAR at www.sedar.com.
THIS NEWS RELEASE MAY CONTAIN FORWARD LOOKING INFORMATION. ACTUAL FUTURE RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTEMPLATED. THE RISKS, UNCERTAINTIES AND OTHER FACTORS, BOTH KNOWN AND UNKNOWN, THAT COULD INFLUENCE ACTUAL RESULTS MAY BE SUBSTANTIAL AND INCLUDE THOSE DESCRIBED IN DOCUMENTS FILED WITH REGULATORY AUTHORITIES, SUCH AS THE COMPANY'S MOST RECENTLY FILED ANNUAL REPORT AND ANNUAL INFORMATION FORM. ACCORDINGLY, NO ASSURANCES CAN BE GIVEN THAT ANY OF THE EVENTS ANTICIPATED BY THE FORWARD-LOOKING STATEMENTS WILL TRANSPIRE OR OCCUR, OR IF ANY OF THEM DO SO, WHAT BENEFITS THE COMPANY WILL DERIVE THEREFROM.
Investor Conference Call
To listen and/or participate in this conference call, please dial 1-800-814-4861 (from Toronto: 416-644-3414) approximately 10 minutes prior to the beginning of the conference call, scheduled for
For those unable to participate in the conference call, a recording of the conference call will be available from
About Global Railway Industries: Global Railway Industries Ltd. is a diversified rail product company serving the railway industry in
%SEDAR: 00010076E
For further information: Company Contact: Terry McManaman, Chairman, President & CEO, Tel: (585) 419-9720, E-mail: [email protected]; Brian McMullan, CFO, Tel: (585) 419-9720, E-mail: [email protected]
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